Benefits and Barriers of EBusiness in the Healthcare System

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Benefits and Barriers of E-Business in the
Healthcare System

• Mohammed A. Al-Sudairy (Ph.D.)Assistant
  Professor
• Business DepartmentKing Abdul Aziz University,
  JeddahMALSUDAIRI_at_KAAU.EDU.SA

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Presentation Topics

• Introduction to E-Commerce
• E-Commerce Categories
• E-Commerce benefits and barriers
• E-business Definition
• E-business Benefits
• Reasons to use E-business
• E-business in the healthcare
• Approach to implementation E-business in the
  healthcare

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EC Introduction

• EC can be broadly described as using IT such as
  Internet and WWW to enable commercial
  transactions and it is revolutionizing the way
  companies conduct their business.
• In practice, this term and a newer term,
  e-business are often used interchangeably. For
  online retail selling, the term e-tailing is
  sometimes used.

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Electronic Commerce

• a general term applied to the use of information
  technology to effect the linkages between the
  functions provided by participants in commerce.
• The handling of business transaction over
  communication networks.
• The buying and selling of goods and services on
  the Internet, especially the World Wide Web.

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Electronic Commerce

• Is not enabling technology but it is simply
  conducting business electronically through
  enabling technology such as EDI, VANs and
  Internet. At the application level typical
  technologies include
• electronic data interchange (EDI)
• Electronic mail
• electronic forms
• electronic catalogues
• electronic funds transfer
• fax
• technical data interchange
• voice messaging
• workflow

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Electronic Commerce Categories
Government
Business
Business
Consumer
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Business to Business (B2B)

• This category of electronic commerce has been
  well established for several years, particularly
  using Electronic Data Interchange (EDI) over
  private or value-added networks.
• Companies use B2B applications
• To mange their global supply chains and market
  and
• Sell their products to corporate customers
• An example would be a company that uses a network
  for ordering from its suppliers, receiving
  invoices and making payments.

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Business to Consumer (B2C)

• B2C applications enable interaction with
  individual consumers anywhere in the world
• The business- to-consumer category largely
  equates to electronic retailing.
• This category has expanded greatly with the
  advent of the World Wide Web. There are now
  shopping malls all over the Internet offering all
  manner of consumer goods, from cakes and wine to
  computers and motor cars.

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Business to Government (B2G)

• This category covers all transactions between
  companies and government organizations.
• Currently this category is in its infancy, but it
  could expand quite rapidly as governments use
  their own operations to promote awareness and
  growth of electronic commerce.
• For example
• in the USA the details of government procurements
  are publicized over the Internet and companies
  can respond electronically.
• administrations may also offer the option of
  electronic interchange for such transactions as
  VAT returns and the payment of corporate taxes.

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Government to Consumer (G2C)

• This category has not yet emerged.
• However, in the wake of a growth of both the
  business-consumer and business-administration
  categories, governments may extend electronic
  interaction to such areas as welfare payments and
  self-assessed tax returns

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Benefits of EC

• Cost reduction
• Enhanced cusomer service
• Acces to new global market
• Enhanced potential for partners

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Example of Specific Business Benefits of
Electronic Commerce

• reduced advertising costs
• reduced delivery cost, notably for goods that can
  also be delivered electronically
• reduced design and manufacturing cost
• improved market intelligence and strategic
  planning
• access to new markets
• customer involvement in product and service
  innovation
• more opportunity for niche marketing
• equal access to markets (i.e. for SMEs, larger
  corporations)

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Barriers Cost and challenges

• The need for hiring or retraining of IT personal
• Profits uncertainty in the new global markets
• Perceived problems with internet security not
  seen with traditional market
• Difficulty in gaining competitive advantages on
  the Internet

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E-Commerce and E-business

• The line between e-commerce and e-business has
  been blurred, so the terms are nearly
  interchangeable.
• Usually e-commerce refers to the
  business-to-consumer applications, while
  e-business encompasses all business-to-business
  applications as well as e-commerce.
• Essentially, either word implies transacting
  business via computer, through a virtual private
  network (VPN), the Internet or a secured site
  usually called an extranet.

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Facts

• E-commerce already was misused, abused and
  confused when E-business emerged.
• E-business is an E-commerce and they are The
  E-marketing
• Effort to separate the EC and EB have been driven
  by
• Marketing motives and dreadfully thin in
  substance

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E-business

• One of the first to use the term was IBM, when,
  in October 1997, it launched a thematic campaign
  built around the term.
• e-business derived from such terms as
• "e-mail" and
• "e-commerce"
• The conduct of business on the Internet, not only
  buying and selling but also servicing customers
  and collaborating with business partners.
•  Today, major corporations are rethinking their
  businesses in terms of the Internet and its new
  culture and capabilities.

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E-business Definition

• Publishing information, and performing different
  types of transaction electronically over the
  Intranets, Extranets and Internets within
  organizations or between them.

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Differentiating Between E-business Categories

• Some terms are generated to express specific
  functions related to a narrower concept within
  e-business. These include
• e-commerce, e-government , e-bargain, e-auction,
  e-advertisement, e-outsourcing, e-procurement
• Other terms are concerned with providing an
  alternative comprehensive name to e-business such
  as
• Dynamic trade
• Para-enterprise

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Differentiating Between E-business Categories

• Other function oriented e-terms are
• E-Learning
• E-Mailing
• E-Marketing
• E-Supply
• E-Operational Resources Management
• E-Trading

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Differentiating Between E-business Categories

• E-Auctioning
• E-Banking
• E-Healthcare
• E-Directories
• E-Engineering
• E-Franchising

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Reasons to use E-business

• Companies are using the Web to
• Buy parts and supplies from other companies,
• Collaborate on sales promotions, and
• Do joint research.

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Reasons for Going on Line

• Expanding market reach
• Generating visibility
• Strengthening business relationship
• Responsiveness
• Offering new services
• Cost reduction
• Just in time inventory

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Advantages of E-business

• Global accessibility and sales reach
• Widen the availability of information
• Closer relationship
• Enhance work integration up to the world level
• Free samples.
• Reduced cost.
• Media breaks.
• Time to market.
• Customer loyalty.
• Save time, movement, space and papers.

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Supplier opportunities and customer benefits

• Supplier opportunity
• global presence
• improved competitiveness
• mass customization customerization
• shorten or eradicate supply chains
• substantial cost savings
• novel business opportunities

• Customer benefit
• global choice
• quality of service
• personalized products services
• rapid response to needs
• substantial price reductions
• new products services

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The pipeline of Healthcare costs
Cost Forces
Manufacturer Distributor
Healthcare Payer Sponsor
Provider
Pricing Forces
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Healthcare Industry Trading Partner Relation
Medical / Surgical Product Manufacturers
Medicare Fiscal Intermediaries Carriers
Healthcare Financing Administration (Medicare)
Electronic Medical Claims Companies
Medical / Surgical Distributors
Claims Payers Indemnity Managed care Self insured
Healthcare Providers
Purchasing Group
Wholesale Drug Distributors
Medicaid Processors
Pharmaceutical Manufacturers
Medicaid
Self-pay
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E-business benefits in the healthcare

• Improve quality of care
• Provide operational savings
• Reduction in fraudulent
• Faster sharing of information
• Searchable health information databases
• Enhanced care delivery capabilities
• Improved health outcomes
• Market differentiation

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E-business benefits in the healthcare

• Control of the customer relationship
• Dramatic cost decreases
• Improved customer service levels
• Reduced non-value-added work
• Increased visibility
• Improving healthcare delivery
• New product offerings

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The approach to implementing E-business in the
healthcare

• Diagnose the Pain Assessment
• Look at all transactional business activities
  that can be shifted to an online environment
• procurement,
• claims processing,
• patient records, and
• orders for labs and pharmacy

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The approach to implementing E-business in the
healthcare

• Treat the Worst First Identify
• assess your operational pain
• look into the processes that are causing the most
  discomfort
• Don't ignore your extended community whose
  processes link into yours
• Taking the integration of financial and clinical
  information as an example

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The approach to implementing E-business in the
healthcare

• Examine the Risks and Returns on investment.
• evaluate the most critical problems by estimating
  cost and potential ROI.
• Which e-business initiatives will provide the
  greatest "quality of life" in return for the
  investment?
• What types of improvements will give your
  organization a competitive edge with both
  partners and patients?

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The approach to implementing E-business in the
healthcare

• Experienced Hands for Hands on CareExecute.
• Solutions providers range from software vendors
  to systems integrators to high-level consultants
  to ASPs.
• To take full advantage of what technology has to
  offer.

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The approach to implementing E-business in the
healthcare

• Avoiding Complications.
• Managing Change.
• Overcoming Resistance.
• The Transition.
• Managing Costs and Finally.
• look beyond the software license costs.